By Jon Leckie CoStar News
A Los Angeles-based multifamily investment firm is reaching beyond its West Coast roots with a deal that expands the company’s portfolio into the greater Philadelphia market for the first time.
Universe Holdings has purchased Mi-Place at West Rancocas in Mount Holly, New Jersey for $33.6 million from Fernmoor Homes, the first of a two-property deal valued at $93.5 million. The second half of the transaction is expected to close in early 2025; details of that property weren't disclosed.
“We have been in the New Jersey market for several years and believe in its stable long-term viability,” Henry Manoucheri, chief executive at Universe Holdings, said in a statement. “We have boots on the ground … and our plan is to acquire additional assets that will fortify our position in the market.”
Mi-Place at West Rancocas consists of 108 units including 12 three-bedroom townhouses with the remaining units evenly split between one- and two-bedroom apartments with individual balconies, according to news release announcing the sale. The project was completed in 2022, the statement said.
Universe Holdings cited a small-town environment, strong school system, and proximity to job centers in Philadelphia that are reachable by commuter train or car as consistent demand drivers in the area.
Under the terms of the deal, Universe Holdings will assume a $24.25 million bridge loan from Dwight Capital that it plans to refinance into a fixed-rate loan through the U.S. Department of Housing and Urban Development.
The deal comes as overall multifamily investment in the Philadelphia area has declined 96% since the third quarter of 2022 as institutional buyers have shied away from the market due to decelerating rent growth and elevated interest rates, a CoStar analysis showed.
“We believe that the best time to buy is on weakness while everyone else runs for cover,” Manoucheri said.
Expanding portfolio
The acquisition also marks Universe Holdings' third acquisition on the East Coast.
In December 2023, the firm purchased a 250-unit multifamily property in Tampa, Florida, built in 2016 for $66 million from Passco Companies. It made its first East Coast purchase in May 2021 with the $60 million acquisition of 226 units in Toms River, New Jersey, roughly an hour east of Philadelphia from Morgan Properties.
In addition to one property in Las Vegas, Nevada, the remainder of Universe Holdings' 72 properties run from Ventura to San Diego in California, according to CoStar data.
Since its founding in 1994, Universe Holdings has completed multifamily transactions involving more than 7,500 units. The privately held investment and management firm focuses on value-add and off-market transactions aimed at long-term appreciation.
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